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Environmental Protection Agency.
The Environmental Protection Agency (EPA) is proposing to approve changes to the Kentucky State Implementation Plan (SIP) submitted by the Commonwealth of Kentucky through its Energy and Environment Cabinet (EEC) on November 10, 2016, for the Louisville Metro Air Pollution Control District (District). This SIP revision seeks to remove Stage II vapor control requirements for new and upgraded gasoline dispensing facilities and allow for the decommissioning of existing Stage II equipment in Jefferson County, Kentucky. EPA has preliminarily determined that Kentucky's November 10, 2016, SIP revision is approvable because it is consistent with the Clean Air Act (CAA or Act).
Written comments must be received on or before August 2, 2017.
Submit your comments, identified by Docket ID No. EPA-R04-OAR-2017-0014 at http://www.regulations.gov. Follow the online instructions for submitting comments. Once submitted, comments cannot be edited or removed from Regulations.gov. EPA may publish any comment received to its public docket. Do not submit electronically any information you consider to be Confidential Business Information (CBI) or other information whose disclosure is restricted by statute. Multimedia submissions (audio, video, etc.) must be accompanied by a written comment. The written comment is considered the official comment and should include discussion of all points you wish to make. EPA will generally not consider comments or comment contents located outside of the primary submission (i.e. on the web, cloud, or other file sharing system). For additional submission methods, the full EPA public comment policy, information about CBI or multimedia submissions, and general guidance on making effective comments, please visit http://www2.epa.gov/dockets/commenting-epa-dockets.
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FOR FURTHER INFORMATION CONTACT:
Kelly Sheckler, Air Regulatory Management Section, Air Planning and Implementation Branch, Air, Pesticides and Toxics Management Division, U.S. Environmental Protection Agency, Region 4, 61 Forsyth Street SW., Atlanta, Georgia 30303-8960. Ms. Sheckler's phone number is (404) 562-9222. She can also be reached via electronic mail at email@example.com.
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I. Background for Federal Stage II Requirements
Stage I vapor recovery is a type of emission control system that captures gasoline vapors that are released when gasoline is delivered to a storage tank. The vapors are returned to the tank truck as the storage tank is being filled with fuel, rather than released to the ambient air. Stage II and onboard refueling vapor recovery (ORVR) are two types of emission control systems that capture fuel vapors from vehicle gas tanks during refueling. Stage II systems are specifically installed at gasoline dispensing facilities and capture the refueling fuel vapors at the gasoline pump nozzle. The system carries the vapors back to the underground storage tank at the gasoline dispensing facility to prevent the vapors from escaping to the atmosphere. ORVR systems are carbon canisters installed directly on automobiles to capture the fuel vapors evacuated from the gasoline tank before they reach the nozzle. The fuel vapors captured in the carbon canisters are then combusted in the engine when the automobile is in operation.
Under section 182(b)(3) of the CAA, each state was required to submit a SIP revision to implement Stage II for all ozone nonattainment areas classified as moderate, serious, severe, or extreme, primarily for the control of volatile organic compounds (VOC)—a precursor to ozone formation.
However, section 202(a)(6) of the CAA states that the section 182(b)(3) Stage II requirements for moderate ozone nonattainment areas shall not apply after the promulgation of ORVR standards.
ORVR standards were promulgated by EPA on April 6, 1994. See 59 FR 16262 and 40 CFR parts 86, 88, and 600. As a result, the CAA no longer requires moderate areas to impose Stage II controls under section 182(b)(3), and such areas were able to submit SIP revisions, in compliance with section 110(l) of the CAA, to remove Stage II requirements from their SIPs. EPA's policy memoranda related to ORVR, dated March 9, 1993, and June 23, 1993, provide further guidance on removing Stage II requirements from certain areas. The policy memorandum dated March 9, 1993, states that “[w]hen onboard rules are promulgated, a State may withdraw its Stage II rules for moderate areas from the SIP (or from consideration as a SIP revision) consistent with its obligations under sections 182(b)(3) and 202(a)(6), so long as withdrawal will not interfere with any other applicable requirement of the Act.” 
CAA section 202(a)(6) also provides discretionary authority to the EPA Administrator to, by rule, revise or waive the section 182(b)(3) Stage II requirement for serious, severe, and extreme ozone nonattainment areas after the Administrator determines that ORVR is in widespread use throughout the motor vehicle fleet. On May 16, 2012, in a rulemaking entitled “Air Quality: Widespread Use for Onboard Refueling Vapor Recovery and Stage II Waiver,” EPA determined that ORVR technology is in widespread use throughout the motor vehicle fleet for Start Printed Page 30810purposes of controlling motor vehicle refueling emissions. See 77 FR 28772. By that action, EPA waived the requirement for states to implement Stage II gasoline vapor recovery systems at gasoline dispensing facilities in nonattainment areas classified as serious and above for the ozone NAAQS. Effective May 16, 2012, states implementing mandatory Stage II programs under section 182(b)(3) of the CAA were allowed to submit SIP revisions to remove this program. See 40 CFR 51.126(b).
On April 7, 2012, EPA released the guidance entitled “Guidance on Removing Stage II Gasoline Vapor Control Programs from State Implementation Plans and Assessing Comparable Measures” for states to consider in preparing their SIP revisions to remove existing Stage II programs from state implementation plans.
II. Kentucky's Stage II Requirements for Jefferson County
On November 6, 1991, EPA designated and classified Jefferson County and portions for Bullitt and Oldham Counties in Kentucky (hereinafter referred to as the “Kentucky portion of the Louisville Area” or “Area”) as part of the five-county area in and around the Louisville, KY-IN, area as a moderate nonattainment area for the 1-hour ozone NAAQS.
See 56 FR 56694, 56765. As mentioned above, the “moderate” classification triggered various statutory requirements for this Area, including the requirement pursuant to section 182(b)(3) of the CAA for the Area to require all owners and operators of gasoline dispensing systems to install and operate a system for gasoline vapor recovery of emissions from the fueling of motor vehicles known as “Stage II.” 
On March 4, 1993, the Commonwealth of Kentucky, on behalf of Jefferson County, submitted a SIP revision to address the Stage II requirements for the Kentucky portion of the Louisville Area. EPA approved that SIP revision, containing Jefferson County Regulation 6.40, Standards of Performance for Gasoline Transfer to Motor Vehicles (Stage II Vapor Recovery and Control Systems), in a notice published on March 6, 1996. See 61 FR 8873. Louisville's Stage II rule, as currently incorporated into the SIP, requires that Stage II systems be tested and certified to meet a 95 percent emission reduction efficiency by using a system approved by the California Air Resources Board. The rule requires sources to verify proper installation and function of Stage II equipment through use of a liquid blockage test and a leak test prior to system operation and every five years or upon major modification of a facility (i.e., 75 percent or more equipment change). Louisville also established an inspection program consistent with that described in EPA's Stage II guidance and has established procedures for enforcing violations of the Stage II requirements.
On March 30, 2001, Kentucky submitted to EPA a request to redesignate the Kentucky portion of the Louisville Area to attainment for the 1-hour ozone standard and an associated maintenance plan. The maintenance plan, as required under section 175A of the CAA, showed that nitrogen oxides and VOC emissions in the Area would remain below the 1999 “attainment year” levels through the greater than ten-year period from 1999-2012. In making these projections, Kentucky factored in the emissions benefit of the Area's Stage II program, thereby maintaining this program as an active part of its 1-hour ozone SIP. The redesignation request and maintenance plan were approved by EPA, effective November 23, 2001. S ee 66 FR 53665.
Subsequently, Bullitt, Jefferson and Oldham counties in Kentucky (or portions thereof) were designated nonattainment as a part of a larger bi-state nonattainment area which included Kentucky and Indiana counties in and around the Louisville Area for the 1997 8-hour ozone standard.
On July 5, 2007, the Area (i.e., the Kentucky portion of the bi-state Louisville Area) was redesignated to attainment of the 1997 8-hour ozone NAAQS. See 72 FR 36601.
The Lousiville Area is attaining the 2008 ozone NAAQS.
III. Analysis of the Commonwealth's Submittal
On November 10, 2016, the Commonwealth of Kentucky submitted a revision for the Jefferson County portion of the Kentucky SIP to EPA seeking modifications of the Stage II requirements in the Kentucky portion of the Louisville Area. Specifically, it seeks the removal of Jefferson County Regulation 6.40, Standards of Performance for Gasoline Transfer to Motor Vehicles (Stage II Vapor Recovery and Control Systems) from the Kentucky SIP. These modifications would remove Stage II vapor control requirements for new and upgraded gasoline dispensing facilities in the Louisville Area and allow for the decommissioning of existing Stage II equipment.
EPA's primary consideration for determining the approvability of the Commonwealth of Kentucky's request is whether this requested action complies with section 110(l) of the CAA.
Section 110(l) requires that a revision to the SIP not interfere with any applicable requirement concerning attainment and reasonable further progress (as defined in section 171), or any other applicable requirement of the Act. EPA evaluates each section 110(l) noninterference demonstration on a case-by-case basis, considering the circumstances of each SIP revision. EPA interprets 110(l) as applying to all NAAQS that are in effect, including those that have been promulgated, but for which the EPA has not yet made designations. The degree of analysis focused on any particular NAAQS in a noninterference demonstration varies depending on the nature of the emissions associated with the proposed SIP revision. EPA's analysis of Kentucky's November 10, 2016, SIP revision pursuant to section 110(l) is provided below.
In its November 10, 2016, SIP revision, Kentucky used EPA's guidance entitled “Guidance on Removing Stage II Gasoline Vapor Control Programs from State Implementation Plans and Assessing Comparable Measures” to conduct a series of calculations to determine the potential impact on air quality of removing the Stage II Start Printed Page 30811program.
The 110(l) noninterference demonstration for the Kentucky portion of the Louisville Area focused on VOC emissions because, as mentioned above, Stage II requirements affect VOC emissions and because VOC emissions are a precursor for ozone formation. The results of Kentucky's analysis are provided in the table below.
Table 1—VOC Emissions Difference Between Stage II VRS in Place and Removed
(tons per day)|
Table 1 shows that the removal of Stage II vapor recovery systems in the Kentucky portion of the Louisville Area starting in 2017 would have resulted and will result in a VOC emission decrease. If instead Stage II requirements are kept in place, VOC emissions will decrease by less, and it will be less beneficial to air quality in the Kentucky portion of the Louisville Area to keep Stage II systems in operation.
The affected sources covered by the Kentucky portion of the Louisville Area portion of Kentucky's Stage II vapor recovery requirements are sources of VOC. Other criteria pollutants (carbon monoxide, sulfur dioxide, nitrogen dioxide, particulate matter, and lead) are not emitted by gasoline dispensing facilities and will not be affected by the removal of Stage II controls.
The proposed revisions to Jefferson County Regulation 6.40, Standards of Performance for Gasoline Transfer to Motor Vehicles (Stage II Vapor Recovery and Control Systems), include that gasoline dispensing facilities located in the Kentucky portion of the Louisville Area shall decommission and remove the systems no later than December 31, 2018. Kentucky noted in its submission that the decommissioning procedures in the revised version of Jefferson County Regulation 6.40, Standards of Performance for Gasoline Transfer to Motor Vehicles (Stage II Vapor Recovery and Control Systems, follow Petroleum Equipment Institute (PEI) guidance, “Recommended Practices for Installation and Testing of Vapor Recovery Systems at Vehicle Refueling Sites,” PEI/RP300-09.
EPA is proposing to determine that Kentucky's technical analysis is consistent with EPA's guidance on removing Stage II requirements from a SIP, including as it relates to the decommissioning and phasing out of the Stage II requirements for the Kentucky portion of the Louisville Area. EPA is also making the preliminary determination that Kentucky's SIP revision is consistent with the CAA and with EPA's regulations related to removal of Stage II requirements from the SIP, and that these changes will not interfere with any applicable requirement concerning attainment or any other applicable requirement of the CAA, and therefore satisfy section 110(l).
IV. Incorporation by Reference
In this rule, EPA is proposing to include in a final EPA rule regulatory text that includes incorporation by reference. In accordance with requirements of 1 CFR 51.5, EPA is proposing to incorporate by reference Jefferson County Regulation 6.40, Standards of Performance for Gasoline Transfer to Motor Vehicles (Stage II Vapor Recovery and Control Systems), effective May 18, 2016. EPA has made, and will continue to make, these materials generally available through www.regulations.gov and/or at the EPA Region 4 office (please contact the person identified in the FOR FURTHER INFORMATION CONTACT section of this preamble for more information).
V. Proposed Action
EPA is proposing to approve the Commonwealth of Kentucky's November 10, 2016, SIP revision that changes the Louisville Area's Stage II rule, Jefferson County Regulation 6.40, Standards of Performance for Gasoline Transfer to Motor Vehicles (Stage II Vapor Recovery and Control Systems), to allow for the removal of the Stage II requirement and the orderly decommissioning of Stage II equipment. EPA is proposing this approval because the Agency has made the preliminary determination that the Commonwealth of Kentucky's November 10, 2016, SIP revision related to the Louisville Area's Stage II rule is consistent with the CAA and with EPA's regulations and guidance.
VI. Statutory and Executive Order Reviews
Under the CAA, the Administrator is required to approve a SIP submission that complies with the provisions of the Act and applicable federal regulations. See 42 U.S.C. 7410(k); 40 CFR 52.02(a). Thus, in reviewing SIP submissions, EPA's role is to approve state choices, provided that they meet the criteria of the CAA. Accordingly, this proposed action merely proposes to approve state law as meeting federal requirements and does not impose additional requirements beyond those imposed by state law. For that reason, this proposed action:
- Is not a “significant regulatory action” subject to review by the Office of Management and Budget under Executive Orders 12866 (58 FR 51735, October 4, 1993) and 13563 (76 FR 3821, January 21, 2011);
- does not impose an information collection burden under the provisions of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.);
- is certified as not having a significant economic impact on a substantial number of small entities under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.);
- does not contain any unfunded mandate or significantly or uniquely affect small governments, as described Start Printed Page 30812in the Unfunded Mandates Reform Act of 1995 (Pub. L. 104-4);
- does not have Federalism implications as specified in Executive Order 13132 (64 FR 43255, August 10, 1999);
- is not an economically significant regulatory action based on health or safety risks subject to Executive Order 13045 (62 FR 19885, April 23, 1997);
- is not a significant regulatory action subject to Executive Order 13211 (66 FR 28355, May 22, 2001);
- is not subject to requirements of Section 12(d) of the National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272 note) because application of those requirements would be inconsistent with the CAA; and
- does not provide EPA with the discretionary authority to address, as appropriate, disproportionate human health or environmental effects, using practicable and legally permissible methods, under Executive Order 12898 (59 FR 7629, February 16, 1994).
In addition, the SIP is not approved to apply on any Indian reservation land or in any other area where EPA or an Indian tribe has demonstrated that a tribe has jurisdiction. In those areas of Indian country, the rule does not have tribal implications as specified by Executive Order 13175 (65 FR 67249, November 9, 2000), nor will it impose substantial direct costs on tribal governments or preempt tribal law.
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- Environmental protection
- Air pollution control
- Incorporation by reference
- Nitrogen dioxide
- Reporting and recordkeeping requirements
- Volatile organic compounds
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Dated: June 15, 2017.
V. Anne Heard,
Acting Regional Administrator, Region 4.
[FR Doc. 2017-13858 Filed 6-30-17; 8:45 am]
BILLING CODE 6560-50-P